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Indicators of phoenix activity
Stakeholders noted that there are a range of 'signals' or 'indicators' that phoenix activity may be about to occur. These generally occur before the company has been liquidated and thus, can be considered leading indicators of phoenix activity. These indicators include:
- the company fails to lodge tax returns and/or Business Activity Statements
- the business records and/or taxation records significantly understate or overstate the operations of the business, including debts owed
- withheld payments such as PAYGW, superannuation and child support payments are kept by the business
- workers are pressured to take leave
- workers have their employment status changed from permanent to casual
- workers are underpaid
- equipment, machinery and uniforms are not replaced as needed.
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